TG Fluid Systems USA Corporation AME Annual Conference

TG Fluid Systems, USA Corporation AME Annual Conference, 2010

Who is Toyoda Gosei? • 25, 000 Employees • Four Business Units Int/Ext, Body Sealing, Safety Systems & Functional • $6 Billion Sales • 16 Countries • 45 Facilities – North America, 9 Manufacturing Divisions 2

Introduction to TGFSUS • 1996: Started Production as Eagle-Picher Fluid Systems. – Manufacturing Location: Green Oak Township, Michigan – Sales and Engineering: Green Oak Township, Michigan • 2000: Toyoda Gosei Acquired Eagle-Picher Fluid Systems • 2000: Changed name to TG Fluid Systems USA Corporation • 2004: Moved operation to Advance Street, Brighton 3

TG Fluid Systems, Summary • Plant Floor Space: 56, 000 Sq. Ft. • Warehouse: 20, 000 Sq. Ft. • Office Space: 14, 000 Sq. Ft. • Team Members: 215 – Hourly: 173 – Salary: 42 4

TGFSUS Ownership Subsidiary of Toyoda Gosei North America – Directors of TGFSUS: • Hiromi Ikehata (Chairman) • Scott Maly Toyoda Gosei North America- subsidiary of Toyoda Gosei Company Ltd 5

What is our Purpose? • Rapidly respond to the needs of Fuel Tank manufactures. • Requires: – Product Technology – Design Support – Competitive Cost – Rapid Response 6

The Tank System We Support • Fuel Feed and Return • Fuel Fill – Canister Vent Systems – Recirculation – Fresh Air • Running Loss – Vent Line 7

Vision, Values and Mission • Vision: Through superior support to our customers, our customers advocate TGFSUS. • Values: Focus for growth; Innovative solutions; Passion to deliver; Enthusiastic leadership; Trustworthy and Loyal • Mission Statement: To provide globally innovative, dependable solutions that customer's value. 8

Fuel System Market, Tank Only 12 M SAAR 9

Customer Base 2010 10

Revenue *Forecasted 11

TGFS Manufacturing System • Hoshin Kanri- Business Planning – – Vision, Values, Mission and Goals Key Initiatives Key Operating Indicators that support goals- 32 Daily, weekly and monthly review • Heijunka- Level manufacturing system – Kan Ban: extrusion, assembly and shopping • Root Cause and Countermeasures- 5 Why, Poka-yoke, Yoketen, 5 S/2 S 1 Y • Build and enforce culture- Culture Fit & PMT • Consistent Communication 12

Strength, Standard and Stable • Key Operating Indicators – Support the Business Plan – Managers – Team Leaders – Drive Standardize and Stabilize – Data Driven – Root Cause and Countermeasures – Drive accountability 13

32 Key Operating Indicators Review RC & CM Weekly with mgrs No Review RC & CM Weekly with mgrs 14

Strength, Process Improvement • Tube Forming – Fully Manual to Fully automated • 5 phases – Active interaction with machine & tool builder – ROI: 5 -9 months – Reduces repetitive motion injuries by 80% – Banned: • “Can’t” • “Hope” 15

Tube Forming Technology (-)Ergo, (-)Quality, ( -)Efficiency Oven (-)Floor space, (+) Efficiency, (+)Quality (-)Efficiency and (-)tooling cost B 1 (-)Efficiency B 2 B 3 16

Forming Variation Oven B 2 B 3 Many tools, many people, few controls 2 -4 tools, 1 person, few controls 1 tool, no people, many controls 17

Sales Vol. 18

Improvement Opportunity • Business Plan – Does not Include all Stake Holders – Lacks SWOT, PEST (political, economic, social, technical) – 12 month horizon – Slow to react to market and culture trends – Does not fully engage the team – Lacks prioritization for the Team 19

Hoshin Kanri, 2009 1. Weekly tracking 2. Ensure rhythmic work 3. Activities should drive results- Activities That drive Sustainable Results 1. Objectives 2. Dept KPI or KOI 3. Annual plan- April thru March 4. Recommend 2 Job Schedule or 13 week plan to provide evidence of Activities That Drive Results Idea Formation Objective Method Form 1. Reflection for current year per Policy Item 2. 5 Why drives this document 3. This is a key supporting document to Roles and Responsibilities and Policy Idea Sheet 1. Role and Responsibilities of department and impact on the Company policy 2. Sate current state and target for the next four years. Consider department priorities when setting target 3. Consider action to sustain 4 and 5 at that level Reflection, Standardization Roles and Responsibilities 20

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Improvement Opportunities • Business Plan Process – Hoshin Kanri to Hybrid…. . One Page Plan • • • Hoshin One Page Plan 1 PP Good to Great Interactive with manager conscientious Stake Holders 3 -5 year Thrust, Business and Culture 18 month plan Focus Initiatives 90 Business review, re-budget 22

One Page Plan, 2011 23

Questions 24